Unfortunately, the realities on the ground present a stark contrast with the companies’ public commitments, as communities’ opposition to mining projects continues to increase around the world. In Latin America alone, 206 mining conflicts are currently being recorded.

In the absence of effective monitoring and/or sanctioning of their actions, we have to rely on the ‘good faith’ of these initiatives for them to actually work. So what can we make of the company’s intentions given the evidence provided by the case?

OceanaGold’s ICSID case and the evidence presented in it also reveal mining companies’ selective eagerness to recognize the authority of global institutions that can enforce human rights. Appeals to investment and trade dispute mechanisms stands in stark contrast to human rights commitments, as trade and investment rules can undermine the authority of other global regulatory frameworks, such as the Guiding Principles on Business and Human Rights.

2) Insincere respect for national laws?

The company’s push into El Salvador—despite the government’s refusal to grant an exploitation license to Pacific Rim based on its non-fulfillment of its regulatory requirements—highlights OceanaGold’s conditional support of resource-rich countries’ sovereignty and democratic governance. Only as long as rules and regulations favor the company and its ability to gain low-cost access to resources, will it respect national laws?

Similarly, OceanaGold’s commitment to contribute to local development clearly contradicts its demand for more than $300 million from the El Salvadorian government, an amount which represents half of the country’s entire public education budget.

Companies’ commitments to principles of human rights and environmental protection can be welcomed first steps in building a more sustainable and just mining industry. However, for any of these commitments to earn our support would require companies to narrow the gap between what they say and what they do.

OceanaGold’s ‘good faith’ would be better demonstrated by respecting the sovereignty of El Salvador and the rights of the affected communities by abandoning its pursuit of mining in El Salvador.

Washington, DC

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